For years, global fast-fashion giant, Forever 21 has been the teens’ main supplier of inexpensive and trendy clothes. However, last Sunday, September 29, the company filed for bankruptcy protection.
In a letter to their customers they said that that their move of filing for bankruptcy protection under chapter 11 of the U.S Bankruptcy code will allow the stores to operate as usual.
They also emphasized that they are not going out of business.
“Essentially this allows Forever 21 to continue to operate its stores as usual, while the Company takes positive steps to reorganize the business so we can return to profitability and refocus on delivering incredible styles and fashion you love for many years to come.” they said.
As part of this move, they have requested approval to close a number of stores worldwide. Although the decision as to which domestic stores will be closed are still ongoing, it is expected that 350 stores all over the world will be shut down. Despite this, it will be “business as usual” in the Philippines as all 15 stores will continue to operate.
It also released an official statement on its Twitter account.
Perhaps, Forever 21’s decline is a sign of the changing times. Today’s generation of teens, the predominant market of the company, are more inclined to shop online rather than in brick-and-mortar stores.
The youth’s preference for sustainable yet trendy pieces they can buy at thrift stores or ukay ukays may have contributed to the clothing company’s slump.